7 Tips For Taking The Leap From Side Gig To Small Business

It’s exciting when you’ve decided the time is right to turn a side gig into a full-time job. However, plenty of big questions loom if this is your first foray into small business ownership. Take some good, practical advice from those who have gone down a similar road before you. After all, great businesses have been born in home garages and basements.

 

1. Figure out your business structure

Are you an independent contractor, self-employed, a freelancer, or a limited liability corporation? All have separate tax implications and you’ll need an Employer Identification Number from the IRS. Read up on your options or take professional advice. If there’s someone else involved in your business or startup, you’ll need to discuss further implications of joint ownership. It’s best to get professional advice.

 

2. Choose a name, do a search, register your business

Here comes the fun part. Once you’ve figured out your business structure, you’ll need a name for your business to complete the documents. It’s a cyberspace world out there, so remember to do a domain search before registering your business.

 

3. Write a business plan

Spend time on your road map as a living document for the business that will look ahead one, three and five years. Consider SMART (Specific – Measurable – Attainable – Relevant – Timely) objectives, plus organization, financing, sales, marketing, competitive analysis, and more.

 

4. Obtain licenses, permits, equipment 

Does your business require any paperwork around licenses and permits, including vehicles? Look into zoning laws, leasing equipment, insurance and  liability at your business location, even if it is at home.

 

5. Make a detailed financial plan

A cash flow analysis is critical. There are more options than ever for financing your business. Will you be self-funded, crowd funded, bank financed, venture capital supported, or arrange another borrowing scheme? Explore loans and grants that may be available to you.  Determine your state and federal tax requirements.

 

6. Familiarize yourself with business law

From advertising to intellectual property to workplace health and safety laws, business owners have a lot to know in far flung matters and a need to protect yourself and your business investment. Your education of business law cannot begin too soon.

 

7. Visit the U.S. Small Business Administration website

Free resources are a bonus. The SBA has a website dedicated to setting up small businesses, found here.

 

If you’re thinking about formally taking the next step with your side gig, odds are that business is going well. That’s great news, but remember — you’re not invincible. Take the proper steps to ensure you are setting your new venture up for success.

 

Resolve your tax problems by visiting Rush Tax Resolution.

For more tips and inspiration for small business owners,
visit CBS Small Business Pulse Los Angeles.

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